Americanas whistleblower says board's 'obsession' with results fueled $54 billion fraud

A former executive from the digital platform of Brazilian retailer Americanas has told federal prosecutors that the company's board harbored an "obsession" with achieving results, a mindset he claims fueled "undesirable behaviors." Marcio Cruz Meirelles, who is cooperating with the investigation, stated that this pressure for performance was an "official company value" that stimulated questionable practices.

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the 'obsession' of the board of directors for results was an 'official company value' and that this culture encouraged 'some not very desirable behaviors'.

The ongoing "Operação Disclosure" investigation is examining an accounting fraud at Americanas that allegedly amounts to R$54 billion (approximately $10 billion USD) and has been ongoing since at least 2009. The latest phase of the probe has focused on the board of directors, seeking to determine their awareness of the massive financial irregularities. Federal Police executed search and seizure warrants against businessmen Carlos Alberto Sicupira and Paulo Alberto Lemann, major shareholders associated with 3G Capital, on June 25.

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the manipulations were structured to escape the control of external audits, with mechanisms designed to prevent the irregularities from being revealed.

Representatives for Sicupira and Lemann vehemently deny any knowledge of the fraud. Their defense team argues that the accounting manipulations were highly sophisticated, designed specifically to bypass external audits and prevent the irregularities from being discovered. Meanwhile, the Federal Public Ministry has reportedly opposed the police's requests for searches and asset freezes, noting a lack of evidence indicating that shareholders or board members were aware of or involved in the illicit activities.

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there is no indication that the shareholders or directors even knew about the occurrence of the illicit acts, let alone proof that they contributed to them.

Americanas itself has stated that it is a "victim of fraud committed by former executives" and pledges to remain cooperative in clarifying the facts. Meirelles further elaborated on the pressure, explaining that demonstrating results was crucial for gaining approval for investments or securing benefits within the company, making performance a key "currency for exchange."

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is a victim of fraud committed by former executives and will continue with a collaborative and diligent posture, as the party most interested in clarifying the facts.